The other day a couple from Roslin came in to the office to
discuss potentially investing in property for Buy to Let. One of the most
important things to think about before investing is the balance between annual
return/yield and the annual value increase/capital growth.
Broomhill Avenue near the Craigiebield House Hotel is one
of the most sought after places to live in Penicuik. The average three bed house
sells for around £245,000 and rents are roughly £1,000 per month.
With this in mind, it was a surprise to find that houses
on Strathesk Road, near Eastfield Road in Peniciuik, have outperformed those on
Broomhill Avenue. This is because the average three bed house in Strathesk Road
can be bought for around £110,000 and the achievable rents can be around £800
per calendar month.
The yield which could be achieved from a property on Strathesk
Road therefore is around an impressive 8.7% per year. When we compare this to
the possible 4.9% on Broomhill Avenue, it is nearly 78% higher in Strathesk
Road!
However, we must remember that yield is not the sole
consideration when investing in Buy to Let properties. The average value of a three
bed house in Strathesk Road in 2005 was £105,000, which has since risen by 5%
in the last 10 years. A three bed house on Broomhill Avenue was worth £185,000
in 2005, meaning the value has increased by an impressive 32% in the same 10
years.
Having
this detail of information at our finger tips, allows us to spot trends in the
local market, which then enables us to give the very best advice to our
clients. We don't charge for that advice. If you want some advice, come
and see us in our offices (6 Bank Street, Penicuik) or email either of us (robert@thekeyplace.co.uk; linda@thekeyplace.co.uk).
No comments:
Post a Comment